The third largest Japanese automaker welcomed the recent agreement between the dockworkers and shippers that would see the end of a labor clash at US west coast ports but also announced the delays will still have an impact on the company’s production level this month.
The shipping delays of necessary parts for its North American production operations will cost Honda around 25,000 vehicle sin lost output after months of clashes between the employees and the companies operating the US west coast ports led to certain carmakers – including Honda – also ship necessary parts by air. Shipping companies and the International Longshore and Warehouse Union finally struck a tentative agreement on Friday to end nine months of negotiations – but only the union approval of the deal would end the clash that has taken its toll on the trade between Asia and 29 US West Coast ports. Honda, for instance, had been relying on air shipments from Japan to get some of the necessary components to keep its North American assembly lines up and running – with a company spokesperson adding the air lifts would only end after port operations are fully operational. “We are pleased to hear the news that a tentative agreement has been reached and are hopeful the ports will resume normal operations soon,” the representative said.
The official added that starting tomorrow the business operations of the plant in Ohio would be fully available, while the facilities in Indiana and Canada will still churn out vehicles at a lower production quota through March 2. So far, according to company estimates, the five factories in North America have lost production of 20,000 units between February 16 and 23 and will further lose another 5,000 before daily operations are fully functional.